Being a 'generalist' is perfect training for a hedge fund manager.

Starting at age 21, Hendry did stints covering Japanese, U.K. and U.S. equities.

In 1998, he moved to London and no one would hire him because he wasn't a master of any one discipline. He was a generalist.

"No one wanted a generalist, but it was perfect training for a hedge fund manager."

2/

Today hedge fund managers should be attending conferences for farmers.

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Hendry talked about the forty-year revulsion of debt and leverage following the stock market crash in 1929.

Then we started loving debt again in the 1970s.

And now we're in a period of debt revulsion again.

"The financial economy has become the economy and I think we could be subject to one of the other generational shifts whereby I should really be attending the Young Farmers Society as opposed to the London School of Economics."

3/

A hedge fund manager has his or her own Confucius sayings.

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"My Confucius saying is 'wise man not invest in over capacity.'"

Hendry has long been a bear on China through his "short China" fund.

"Clearly, I'm prejudicial with regard to the model of economic expansion China is pursuing. I don't' think it's a particularly a unique strategy that it is invoking."

4/

A hedge fund manager's best macro trade is when he or she doesn't fear the consequences of being wrong.

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"The best macro trade, the best trade of any color, is when you don't fear the consequences of being wrong," Hendry said.

He said it's about a question of optionality.

"So that's all about about if you set up the trade on a ex-ante basis 'how much does it cost me? how much does it pay out if I'm right?'"

5/

A hedge funder who's not hostage to his or her errors has a promising future.

"I heard voices in my head that led me to take actions. As I took the actions I became very fearful of the consequences of my actions," Hendry said.

"That's what a hedge fund manager does -- you're very fearful of the consequences of your decisions, and therefore, you give great weight to them and if you're skillful and if you're not a hostage to your errors, the future is rather promising."

6/

Hedge fund managers should recognize that they have no chance of seeing the future.

"You have to give great thought to how you build a portfolio. If I'm poor on timing, then being subject to a short position in equities or commodities, then being subjected to an unlimited loss is inappropriate."

For his China short fund he said he's committed 8% of the funds assets to Japanese CDS.

"If I'm wrong, it's not going to bankrupt me," he said adding that he also tends to favor options so all he can lose is his premium.

8/

A hedge fund manager shouldn't try to 'outsmart' other hedge funders.

"I'm up against some of the brightest people on the planet. I never thought it rational to compete with them by outsmarting them."

9/

The worst thing a hedge fund manager can do is try to make 50% in a month.

According to Hendry, typical hedge fund managers aim to make smaller percentages.

"Someone like Brevan Howard, the have $30 billion, and their ambition is to make small amounts like 5 or 6%."